Investissement Québec ESSOR — Volet 2 : Chantier Productivité

Insider Tip

The non-repayable top-up exists on paper but is reserved for projects with exceptional productivity gains — think 40%+ output increase or a measurable cost-per-unit reduction that beats sector benchmarks. Don't bank on it; size your ask as an interest-free refundable loan. Engage your IQ account director (1-844-474-6367) BEFORE preparing the formal dossier — IQ shapes the application to fit the normative framework and will tell you whether your project fits Volet 2 (productivity) vs Volet 1 (innovation) or Volet 4 (strategic). Volet 2 Chantier Productivité is distinct from existing catalog records for ESSOR Component 1 (id 235), Component 1A (id 266), and Component 1C (id 322) — different eligibility floor and amount ceiling. Stacking with SR&ED, CanExport, NGen, and IRAP is possible subject to the 50% government-support cap.

Success Profile

An established Quebec manufacturer or technology-intensive SME (30–500 employees, $3M–$50M revenue) investing $500K–$5M in new automation, equipment, software, or building modernization to boost productivity by 20%+. Typical winners have 3+ years of operating history, a clear pre/post-project productivity analysis, and a credible sources-and-uses statement showing the remaining 50%+ coming from internal cash, bank financing, or other partners.

Evaluation Criteria

Investissement Québec evaluates against the 2025-2027 normative framework: (1) Strategic alignment with MEIE sector priorities; (2) Quality of the productivity case — measurable pre-/post-project metrics, competitive benchmarks; (3) Financial strength of the applicant and reasonableness of the sources-and-uses plan; (4) Economic impact in Quebec — jobs created or retained, exports, local supply chain; (5) Feasibility of the implementation plan and technology selection; (6) Appropriate leverage — the 50% government-support cap applies across all public sources. Exceptional-productivity-gain projects may qualify for non-repayable top-ups.

Application Steps

Required Documents 8

Eligible Expenses 7

• Equipment and software acquisition and installation
• Building acquisition, construction, or expansion (when tied to the productivity project)
• Technological-transition expenses — cloud computing, business intelligence, artificial intelligence tools
• Automation, robotics, and Industry 4.0 systems integration
• Process electrification and advanced manufacturing technology
• Working capital up to 20% of total eligible expenses
• Professional fees for specialized engineering or integration work

Ineligible Expenses 7

• Activities completed or invoiced before project authorization date
• Like-for-like equipment replacement without productivity gain
• Routine operating expenses unrelated to the productivity project
• Marketing and sales activities
• Refinancing of existing debt
• Dividends, share buybacks, or owner compensation
• GST/QST recoverable through input tax credits

Intake Periods

Continuous intake under the 2025-2027 normative framework (Decree 324-2025), effective April 1, 2025 through April 1, 2027. Projects advance on a rolling evaluation basis. IQ reserves the right to suspend new submissions if the envelope is exhausted.

Deadline Notes

Continuous intake under the 2025-2027 normative framework (Decree 324-2025). Program ends April 1, 2027 unless renewed. Budget envelopes are finite — Investissement Québec and MEIE reserve the right to suspend new applications without notice due to budget constraints. Engage IQ early in your fiscal planning; the 2025-2027 framework will not fund projects that start before authorization.

Open Application Portal →

Ineligible Organizations

• Companies with Quebec revenue under $1M
• Companies in excluded sectors: primary industry (except greenhouse cultivation and forestry), mining, real estate services, construction (except productivity projects), public utilities, telecommunications infrastructure, healthcare delivery, education, public administration, finance/insurance, hospitality (except tourism-related), retail (with limited exceptions)
• Companies operating principally outside Quebec
• Non-profit organizations (program is for for-profit and social economy enterprises)
• Companies in default with other Quebec government programs

Compatible Programs

Clawback Risk

Medium Risk

Loan balance is repayable on the agreed schedule. If the company relocates material operations outside Quebec, sells the funded assets, or defaults on reporting obligations, IQ can accelerate repayment. The non-repayable top-up (when awarded) is converted only upon achievement of specified productivity milestones — failure to achieve them keeps the funding in refundable-loan form.